Friday, April 16, 2010

3 Ways to Use Your Tax Refund

If you are going to be receiving a tax refund this year, here are 3 ways to use it.

1. Pay off/down credit cards: Take a look at your credit card statements especially those with high interest rates and plan to either pay off the card or at least pay down the balance. With the new credit card laws, some interest rates are much higher. This may make paying off the cards even longer so put your refund to work on the balances.

2. Home improvements: Use the refund to make home improvements that you may have been putting off because of a tight budget. Give your A/C unit a checkup before the summer heat take holds. Update your bed and bath with new accessories. Add some curb appeal to your home with fresh mulch, pine straw, flowers, and shrubs.

3. Simply Save It: Another good idea is to simply save your refund. Go ahead and deposit the refund into your savings account to shore up your emergency fund. You will be glad you did especially if an unexpected car repair is needed or an out-of-pocket medical expense arises.

These are just a few ways to use your tax refund when it arrives in the mail or is deposited to your bank account. As the saying goes, don't spend it all in one place.

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